Plan 1--2-Earner Couple with Equal Earnings
Full Annuitization of Personal Account Assets at Retirement With a CPI-Indexed Life Annuity on a Joint and 2/3 Survivor Basis
No Basic
Benefit
Changes
PA Portfolio/Yield*
Scaled LOW Earner
($15,875 in 2002)
Scaled MEDIUM Earner
($35,277 in 2002)
Scaled HIGH Earner
($56,443 in 2002)
Scaled MAXIMUM Earner
($84,900 in 2002)
Low
Yield
50%
Equity
High
Yield
Low
Yield
50%
Equity
High
Yield
Low
Yield
50%
Equity
High
Yield
Low
Yield
50%
Equity
High
Yield
 
(Billions of Constant 2001 Dollars)
2012 Retiree
Present Law
Scheduled Benefit
$723
$723
$723
$1,194
$1,194
$1,194
$1,578
$1,578
$1,578
$1,873
$1,873
$1,873
% Basic Change for All
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
% for PA Annuity**
1.8
2.0
2.0
2.4
2.7
2.7
2.9
3.3
3.3
4.6
5.1
5.1
% for Benefit Offset
-2.0
-2.0
-2.0
-2.7
-2.7
-2.7
-3.3
-3.3
-3.3
-5.1
-5.1
-5.1
Proposed Benefit
$722
$723
$723
$1,191
$1,194
$1,194
$1,572
$1,578
$1,578
$1,863
$1,873
$1,874
% of Present Law
Scheduled Benefit
99.8
100.0
100.0
99.7
100.0
100.0
99.7
100.0
100.0
99.5
100.0
100.0
% of Present Law
Payable Benefit
99.8
100.0
100.0
99.7
100.0
100.0
99.7
100.0
100.0
99.5
100.0
100.0
% of 2001
Real Benefit
113.3
113.5
113.6
113.2
113.5
113.6
115.1
115.5
115.6
121.1
121.8
121.9
2022 Retiree
Present Law
Scheduled Benefit
$767
$767
$767
$1,266
$1,266
$1,266
$1,673
$1,673
$1,673
$2,024
$2,024
$2,024
% Basic Change for All
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
% for PA Annuity**
5.3
6.6
6.8
7.1
8.9
9.2
8.6
10.8
11.2
11.2
13.8
14.2
% for Benefit Offset
-6.2
-6.2
-6.2
-8.4
-8.4
-8.4
-10.1
-10.1
-10.1
-13.0
-13.0
-13.0
Proposed Benefit
$760
$770
$772
$1,250
$1,273
$1,277
$1,648
$1,684
$1,690
$1,986
$2,039
$2,048
% of Present Law
Scheduled Benefit
99.1
100.4
100.6
98.8
100.5
100.8
98.5
100.7
101.0
98.1
100.7
101.2
% of Present Law
Payable Benefit
99.1
100.4
100.6
98.8
100.5
100.8
98.5
100.7
101.0
98.1
100.7
101.2
% of 2001
Real Benefit
119.3
120.9
121.1
118.9
121.0
121.4
120.6
123.3
123.7
129.1
132.6
133.1
2032 Retiree
Present Law
Scheduled Benefit
$813
$813
$813
$1,343
$1,343
$1,343
$1,774
$1,774
$1,774
$2,151
$2,151
$2,151
% Basic Change for All
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
% for PA Annuity**
9.6
13.4
14.1
12.9
18.0
19.0
15.6
21.8
23.0
19.3
26.6
27.9
% for Benefit Offset
-11.8
-11.8
-11.8
-15.9
-15.9
-15.9
-19.2
-19.2
-19.2
-23.6
-23.6
-23.6
Proposed Benefit
$795
$826
$832
$1,303
$1,371
$1,384
$1,710
$1,820
$1,841
$2,059
$2,216
$2,245
% of Present Law
Scheduled Benefit
97.8
101.6
102.3
97.0
102.1
103.1
96.4
102.6
103.8
95.7
103.0
104.4
% of Present Law
Payable Benefit
97.8
101.6
102.3
97.0
102.1
103.1
96.4
102.6
103.8
95.7
103.0
104.4
% of 2001
Real Benefit
124.9
129.7
130.6
123.8
130.4
131.6
125.2
133.2
134.8
133.8
144.1
146.0
2042 Retiree
Present Law
Scheduled Benefit
$896
$896
$896
$1,478
$1,478
$1,478
$1,953
$1,953
$1,953
$2,365
$2,365
$2,365
% Basic Change for All
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
% for PA Annuity**
13.5
20.9
22.5
18.2
28.2
30.3
22.1
34.1
36.6
28.2
43.7
47.0
% for Benefit Offset
-17.4
-17.4
-17.4
-23.4
-23.4
-23.4
-28.3
-28.3
-28.3
-36.2
-36.2
-36.2
Proposed Benefit
$861
$928
$941
$1,402
$1,549
$1,580
$1,831
$2,067
$2,116
$2,175
$2,543
$2,619
% of Present Law
Scheduled Benefit
96.2
103.6
105.1
94.8
104.8
106.9
93.7
105.8
108.3
92.0
107.5
110.7
% of Present Law
Payable Benefit
131.5
141.7
143.8
129.7
143.4
146.2
128.2
144.7
148.2
125.8
147.1
151.5
% of 2001
Real Benefit
135.2
145.6
147.8
133.3
147.3
150.2
134.0
151.3
154.9
141.4
165.3
170.3
2052 Retiree
Present Law
Scheduled Benefit
$986
$986
$986
$1,628
$1,628
$1,628
$2,151
$2,151
$2,151
$2,604
$2,604
$2,604
% Basic Change for All
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
% for PA Annuity**
15.0
24.2
26.2
20.1
32.6
35.3
24.4
39.5
42.8
32.8
54.2
58.9
% for Benefit Offset
-19.6
-19.6
-19.6
-26.4
-26.4
-26.4
-31.9
-31.9
-31.9
-43.3
-43.3
-43.3
Proposed Benefit
$940
$1,032
$1,052
$1,526
$1,730
$1,773
$1,989
$2,314
$2,384
$2,332
$2,888
$3,009
% of Present Law
Scheduled Benefit
95.4
104.7
106.6
93.8
106.3
108.9
92.5
107.6
110.8
89.5
110.9
115.6
% of Present Law
Payable Benefit
131.7
144.6
147.3
129.5
146.8
150.5
127.7
148.6
153.1
123.7
153.2
159.6
% of 2001
Real Benefit
147.6
162.0
165.1
145.1
164.4
168.6
145.6
169.4
174.5
151.6
187.8
195.7
2075 Retiree
Present Law
Scheduled Benefit
$1,231
$1,231
$1,231
$2,032
$2,032
$2,032
$2,685
$2,685
$2,685
$3,250
$3,250
$3,250
% Basic Change for All
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
% for PA Annuity**
14.5
23.5
25.4
19.5
31.6
34.2
23.6
38.2
41.4
31.7
52.4
56.9
% for Benefit Offset
-19.0
-19.0
-19.0
-25.6
-25.6
-25.6
-30.9
-30.9
-30.9
-42.0
-42.0
-42.0
Proposed Benefit
$1,175
$1,286
$1,310
$1,908
$2,154
$2,207
$2,486
$2,880
$2,964
$2,917
$3,590
$3,737
% of Present Law
Scheduled Benefit
95.5
104.5
106.4
93.9
106.0
108.6
92.6
107.3
110.4
89.8
110.5
115.0
% of Present Law
Payable Benefit
142.4
155.9
158.7
140.1
158.2
162.0
138.2
160.1
164.7
133.9
164.8
171.5
% of 2001
Real Benefit
184.5
201.9
205.6
181.4
204.8
209.8
182.0
210.9
217.0
189.7
233.4
243.0
* Low Yield assumes the Treasury Bond yield on all assets, or risk adjusted returns. High Yield reflects a higher 7.1% ultimate real yield on equities, OR investing 60% of PA in equities at the assumed 6.5% yield.
** Annuity is assumed to have a net real yield equal to Long-Term Treasury Bonds, except for 100% Treasury case, where gross annuity yield is equal to Treasury.

Note: Based on 2001 Trustees Intermediate assumptions, including 3.0% Treasury ultimate real yield; plus 6.5% equity, 3.5% corporate bond ultimate real yields, and 0.3% annual ultimate PA and annuity administrative cost. For portfolios with part equity, balance is assumed 60% corporate and 40% Treasury bonds.
Office of the Actuary
Social Security Administration
January 29, 2002

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